Global Pensions | 08 Mar 2010
I’m writing this month’s piece on the eve of the Global Pensions Awards 2010. Tomorrow night’s events are the culmination of months of work, not only from the judges and pension funds who took the time to nominate their providers, but from the asset managers that helped manoeuvre their clients through an unpredictable 2009.
Ask any asset management expert how they will remember the past decade, and the answers will be unsurprisingly grim. I heard about the end of the defined benefit plan, the swift unwinding of retirement security and the “lost decade”.
As 2009 winds down, it’s refreshing to see pension funds beginning to put risk back on the table, tentative as they may be.
It has taken the worst financial crisis in decades, but policymakers are finally taking a long, hard look at exactly what they’ve offered retirees.
Just prior to writing this, I chaired a panel debate for the UKs Pensions Management Institute in London on the various types of risk sharing arrangements which could be implemented in the UK. The background to the debate was that as it stands all the risk rests either with the sponsor when it comes to defined benefit schemes or with the employee when it comes to defined contribution schemes
The Australian superannuation system, so long the darling of many pensions policy aficionados finds itself under pressure as never before. For the first time savers are having to face up to the fact their nest eggs have shrunk and that markets do not always chart a steady northward trajectory.
This month the influential Marathon Club sent out a press release calling for debate around the threats posed to defined benefit pension schemes by accounting standards and IAS 19 in particular. The organisation, which represents roughly £170bn in assets under management (depending on where the markets are) claims that IAS 19 encourages a sort-term approach to alleviating volatility while discouraging the long-term decisions required when running a pension fund which will be expecting to pay out benefits over many decades from now.
GLOBAL - I am writing this from a very rainy Lake District, where I am helping my mother convalesce after an operation.
Well, what a busy month June has turned out to be for the deal makers. In just over four weeks BGI and BlackRock have become BlackRock Global Investors, soon to be known as, erm... BGI? And then, just as the month was drawing to a close Watson Wyatt/Towers Perrin announced they were to become Towers Watson.
This month Global Pensions travelled to Ireland to investigate how the pensions industry, in what was until recently known as the Celtic Tiger, is negotiating a period of severe economic tightening.
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